PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
PIRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Automobile Components industry. PIRC has an excellent profitability rating, but there are some minor concerns on its financial health. PIRC is not valued too expensively and it also shows a decent growth rate. PIRC also has an excellent dividend rating. These ratings could make PIRC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
In the past year PIRC had a positive cash flow from operations.
PIRC had positive earnings in each of the past 5 years.
Each year in the past 5 years PIRC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.36%, PIRC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
With an excellent Return On Equity value of 12.28%, PIRC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.66%, PIRC belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PIRC is in line with the industry average of 6.34%.
The 3 year average ROIC (6.34%) for PIRC is below the current ROIC(10.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROIC | 10.66% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
PIRC's Profit Margin of 6.99% is amongst the best of the industry. PIRC outperforms 93.33% of its industry peers.
PIRC's Profit Margin has declined in the last couple of years.
The Operating Margin of PIRC (13.48%) is better than 100.00% of its industry peers.
PIRC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 64.22%, PIRC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PIRC is still creating some value.
Compared to 1 year ago, PIRC has about the same amount of shares outstanding.
The number of shares outstanding for PIRC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, PIRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.17 indicates that PIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PIRC (2.17) is better than 70.00% of its industry peers.
The Debt to FCF ratio of PIRC is 4.23, which is a neutral value as it means it would take PIRC, 4.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PIRC (4.23) is better than 86.67% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PIRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, PIRC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.59
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.23 indicates that PIRC should not have too much problems paying its short term obligations.
PIRC has a Current ratio of 1.23. This is comparable to the rest of the industry: PIRC outperforms 50.00% of its industry peers.
PIRC has a Quick Ratio of 1.23. This is a bad value and indicates that PIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
PIRC has a Quick ratio of 0.77. This is in the lower half of the industry: PIRC underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.02% over the past year.
Measured over the past 5 years, PIRC shows a small growth in Earnings Per Share. The EPS has been growing by 1.33% on average per year.
Looking at the last year, PIRC shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
PIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
3.2 Future
PIRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
The Revenue is expected to grow by 2.47% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.94 indicates a reasonable valuation of PIRC.
Based on the Price/Earnings ratio, PIRC is valued a bit cheaper than 66.67% of the companies in the same industry.
PIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
PIRC is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
PIRC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, PIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PIRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PIRC may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)7.48
EPS Next 2Y9.11%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
PIRC has a Yearly Dividend Yield of 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 5.13, PIRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.30% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
The dividend of PIRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.3%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
BIT:PIRC (6/20/2025, 7:00:00 PM)
6.066
+0.06 (+1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.77%
Inst Owner ChangeN/A
Ins Owners27.72%
Ins Owner ChangeN/A
Market Cap6.07B
Analysts83
Price Target6.87 (13.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP28.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)11.46%
Min EPS beat(4)-1.96%
Max EPS beat(4)39.27%
EPS beat(8)7
Avg EPS beat(8)19.38%
EPS beat(12)11
Avg EPS beat(12)25.48%
EPS beat(16)14
Avg EPS beat(16)30.41%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)2.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)17.85%
Revenue beat(16)9
Avg Revenue beat(16)27.3%
PT rev (1m)3.03%
PT rev (3m)2.13%
EPS NQ rev (1m)-5.71%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.59 | ||
| P/FCF | 6.71 | ||
| P/OCF | 4.61 | ||
| P/B | 1.04 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)0.61
EY10.06%
EPS(NY)0.69
Fwd EY11.38%
FCF(TTM)0.9
FCFY14.91%
OCF(TTM)1.32
OCFY21.7%
SpS10.27
BVpS5.84
TBVpS0.71
PEG (NY)2.74
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROCE | 13.66% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.01% | ||
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% | ||
| FCFM | 8.81% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 70.84% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.98% | ||
| Profit Quality | 126.07% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.17 |
F-Score6
WACC6.69%
ROIC/WACC1.59
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
Revenue Next Year2.35%
Revenue Next 2Y2.88%
Revenue Next 3Y3.13%
Revenue Next 5Y2.47%
EBIT growth 1Y7.11%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y11.02%
FCF growth 1Y12.96%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y12.62%
OCF growth 3Y12.04%
OCF growth 5Y4.79%